Oriflame Cosmetics reports rise in Q3 profit

4 November 2014 (Last Updated November 4th, 2014 18:30)

Luxembourg based beauty products retailer Oriflame Cosmetics has reported 1% increase in third quarter local currency sales while Euro sales decreased by 7% to €274.5m compared to €294.6m recorded during corresponding quarter last year.

Luxembourg based beauty products retailer Oriflame Cosmetics has reported 1% increase in third quarter local currency sales while Euro sales decreased by 7% to €274.5m compared to €294.6m recorded during corresponding quarter last year.

The net profit of the company has increased to €11.8m from €5.7m in last year.

Oriflame said it will continue to focus on reducing the debt during the forthcoming quarters to ensure that the company remains financially strong.

Oriflame Cosmetics chief execuitve Magnus Brannstrom said: "Currency movements continued to impact us negatively in the quarter, although with consistent price increases and implementation of cost saving initiatives, we managed to offset most of the impact."

"We have continued challenges ahead of us, especially related to exchange rates and macroeconomic development in some of our main markets."

During this period, the market condition in the Eastern part of Ukraine remained challenging, while the Central and Western parts showed improvements, the company added.

The year to date sales growth compared to the same period prior year remain changed in local currency while the growth in the fourth quarter to date is approximately 4% in local currency, company stated.

During nine months, its local currency sales dropped 1% and Euro sales decreased by 12% to €912.1m from €1,035.5m reported during earlier year quarter.